Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to a person holding an approval under subsection 852DH(1) to have a specified percentage (the current approved percentage ) of voting power:
(a) in a controlled Australian financial body; and
(b) for a specified period or indefinitely (the current approved duration );
including as affected by any variation from a previous operation of this section.
Application by holder of approval to vary percentage
(2) The person may apply to vary the current approved percentage by lodging with ASIC an application in the prescribed form that sets out:
(a) the percentage of voting power the person currently has in the body; and
(b) the percentage of voting power the person is seeking approval to have in the body; and
(c) the person's reasons for making the application.
Note: For fees in respect of lodging applications, see Part 9.10.
(3) ASIC must, by written notice given to the applicant, approve the applicant having a new specified percentage of voting power in the body for the current approved duration if:
(a) ASIC is satisfied the new specified percentage is the highest percentage (up to that sought by the applicant and greater than the current approved percentage) of voting power in the body for which the applicant passes the legitimate control test; and
(b) ASIC believes relevant information in the application, or later provided by the applicant, to be correct.
Otherwise, ASIC must, by written notice given to the applicant, refuse such a variation.
ASIC varying percentage or period on own initiative
(4) ASIC may, on its own initiative, by written notice given to the person, vary the person's approval as follows, if ASIC is satisfied of the matters in subsection (5):
(a) vary the current approved percentage to a new specified percentage of voting power in the body for the current approved duration; or
(b) vary the current approved duration to a new specified period or an indefinite period (the new specified duration ) for the current approved percentage of voting power in the body; or
(c) vary both the current approved percentage and the current approved duration to a new specified percentage of voting power in the body for a new specified period or an indefinite period (also the new specified duration ).
Note: ASIC could, for example, vary the approval after becoming aware that information contained in the person's application for approval has ceased to be correct: see section 852DQ.
(5) The matters are that the specified percentage that is to result from the variation is the highest percentage of voting power in the body for which the person passes the legitimate control test.
Note: The specified percentage that is to result from the variation could be the current approved percentage or a new specified percentage. Similarly, the approved duration that is to result from the variation could be the current approved duration or a new specified duration.
Downwards variations
(6) If ASIC varies under subsection (4) either or both of the following:
(a) the current approved percentage to a lower new specified percentage;
(b) the current approved duration to a shorter new specified duration;
then:
(c) the variation takes effect on the day specified in the notice of variation; and
(d) the specified day must be at least 90 days after the day on which the notice is given under subsection (4).
Upwards variations
(7) If ASIC:
(a) varies under subsection (3) the current approved percentage; or
(b) varies under subsection (4) the current approved percentage or the current approved duration other than as described in subsection (6);
the variation takes effect on the day the notice of variation is given under subsection (3) or (4) (as applicable).
(8) ASIC must give a copy of a notice of approval under subsection (3) or a notice under subsection (4) to the body.